Brookfield Asset Management Inc. is a global publicly traded Canadian company. Brookfield's financial statements for its year ended December 31, 2014, are included at the end of this book.
Instructions
Access Brookfield's financial statements for the year ended December 31, 2014, review the notes to the statements, and answer the following questions.
(a) What business is Brookfield Asset Management Inc. in?
(b) Identify the accounting model or method used for the following Brookfield operating segment property, plant, and equipment assets: renewable energy assets, infrastructure assets, property, and private equity (other) assets. Summarize the changes in each of the types of assets in the property, plant, and equipment group, explaining how the balances changed over the 2014 year. How is the company growing?
(c) Comment on the extent to which fair values are used in measuring and reporting property, plant, and equipment assets. What methods and types of assumptions has the company used to determine fair values for these assets measured at fair value?
(d) Brookfield also reports significant investment properties on its balance sheet as well as sustainable resources. What measurement models are used for these two types of long- term assets? If any are based on fair value, what methods and types of assumptions are made when measuring them?
(e) What other methods are available to determine fair value? Which methods are most reliable from a user's perspective? Base your answer on IFRS 13 and what it indicates about fair value measurement to determine what level of fair value measurement the company has used to determine fair values.